Here are some of the frequently asked questions with references to VA home loans. In case you don’t find what you are looking for, kindly get in touch with us and we will supply you with the most appropriate response.
The concept of VA home loan was started with the passage of Servicemen’s Readjustment Act of 1944 whose main aim was to make it easy for those returning from the war to have a seamless readjustment back into civilian life. The loans were thus designed to provide veterans with housing without them having to make any down payments. As a result, home ownership became a reality to many to millions of veterans in the United States.
The usage of a VA home loan is varied and includes the following-:
Whether or not to use your eligibility for the VA home loan is entirely up to and your intentions for applying or not applying for the loans. However, it is important to realize that the application and qualification of this type of loan is not as tedious and doesn’t come with a lot of red tape like the conventional loans. Besides this, you don’t have to make any down payment to access this loan if you are a veteran. We have put in place simple and easy to understand procedures that will make you apply, get qualified and close the loan without any hassles at all. You can contact us or your preferred lender on more advice on whether or not to use your eligibility for the loans.
The maximum amount that any veteran is authorized to borrow in the VA home loans is 25% of the total loan amount up to $104, 250. The maximum VA home loan is however $417,000. But it is important to remember that the lending amount will vary from state to state and also from one lender to the other.
If both husband and wife are eligible for a VA home loan, then they have the option to take the loan and acquire the property jointly. However, the amount of guarantee on the loan they take should never exceed the lesser of 40% of the total loan amount or an equivalent of $36,000.
In the unfortunate event that you die before paying off the VA home loan, your responsibility of repaying the loan will pass to your spouse in the absence of a mortgage life insurance policy. But there is also the VA leniency policy that your spouse can fall back to incase they face temporary hard times and it becomes difficult for them to keep up with the repayment of the loan.